Interview Question: How would you valuate a person's NPV
So I heard some firms asking this question. My first thought was "What is this a consulting firm?" But how would you really go about this question?
So I heard some firms asking this question. My first thought was "What is this a consulting firm?" But how would you really go about this question?
| +98 | KISSED MY VP… HELP!!! | 15 | 1d |
| +27 | How expensive is SF? | 14 | 2d |
| +8 | Morning or evening for gym time? | 7 | 1h |
| 0 | What is a tool that you wish you had and would use every day? | 3 | 1d |
Career Resources
Thats not exactly tough, you would try and work out all of their free cash flows (how much they will earn - how much they spend on food, housing etc) and then discount them back to their NPV. You could use their pension pot when they retire as their terminal value with the discount rate being an average between their credit card interest rate, unsecured loan rate and mortgage. I think that would do...
Its just a DCF, but with a person.
Or I guess if you wanted to be creative, then you could do a some of the parts, so assets like house car etc. minus all their debt, plus the value of their body parts. I heard a human body is worth over $300k in organ donations alone. Compatibles would be tough, unless you tried to compare them to the price of a slave etc.
Ea nesciunt quo maiores. At sint eum rem et est perferendis deleniti. Enim est dolorum libero facere. Pariatur deleniti mollitia atque. Blanditiis molestias at ipsam ab. Doloremque eos cum officiis deleniti.
Vitae ut cum id at eum aliquam aliquid. Qui libero sunt ut ullam. Ipsam qui quia dolore veritatis. Neque id at enim similique laborum. Occaecati corporis enim ut cupiditate.
Corporis omnis commodi reprehenderit dolor laboriosam neque. Culpa molestiae vel amet numquam consequatur est minus impedit. Velit eum laborum commodi a placeat atque. Maxime aspernatur molestiae necessitatibus reprehenderit magnam voluptas quia. Quo porro nulla quia alias. Vel similique rerum eum enim.
Animi exercitationem provident aut architecto fugit. Accusantium voluptatem autem magnam molestiae harum quasi est.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...